A MONTHLY NEWSLETTER FROM BLUE RIDGE ENERGY
matters MEMBERSHIP
May 2017
Capital credits refunds coming in May! Money is coming back to members this May thanks to a nearly $5 million capital credits retirement approved by your Board of Directors!
members. This helps reduce the need for loans, Checks begin mailing on May 5 so be sure to check your which helps keep your electricity rates mailbox! Members qualifying for a $35 or more refund lower. It also aids in maintaining a healthy will be mailed a check separate from their electric bill. balance between debt and equity to ensure your cooperative’s financial Members qualifying for a refund of $35 or more will health and stability.
receive a check in early May. Those qualifying for less will see it as a credit to their electric account in May. Those qualifying for less will see it as a credit to their electric account in May. Those too new to the cooperative to qualify for a refund will build their account over time for future refunds. As a cooperative, Blue Ridge Energy doesn’t earn profits. Instead, revenues remaining after all expenses have been paid each year are considered “margins.” Margins are allocated annually to members and reflect your equity (ownership) in the cooperative. After being used for a period of years as capital to assist in the financing of major reliability projects, these funds are returned to
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The percentage of equity to be retired and refunded to members is determined annually by your Board of Directors based on your cooperative’s financial condition. This year, the percentage is three percent. Over the history of Blue Ridge Energy, more than $57 million has been returned to members.
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the
perspective
O a y s t i a b i b f M
From Blue Ridge CEO Doug Johnson
It pays to be a member Money back to our members through the capital credits system is an important cooperative value provided to the members of Blue Ridge Energy! Members will receive nearly $5 million in capital credits refunds this year as approved by your Board of Directors. These funds go to active members, estates and former members. You can find details about the checks and bill credits we’re issuing in May on the first page of this newsletter. The name “capital credits” may sound complex, but it’s a simple concept. Until they’re returned to members, capital credits are funds used as operating capital to invest in power lines, substations, and other electric system assets that provide you with reliable electricity. Capital credits are the annual margins — revenues minus expenses of the cooperative — which are allocated to each member based on your individual usage and purchase of electricity. After using the money for a period of years to finance investment in electric facilities, it is returned to members over time.
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To assure your return of capital credits and the fiscal health of your cooperative, your Board of directors has approved an equity management plan. The plan uses an industry best standard goal of 40 percent of assets for member equity. It includes a schedule for the regular return of member equity in the form of capital credits. Our members have just over 41 percent equity invested in the cooperative, which is $162 million out of over $393 million in total assets. This year’s return of capital is three percent of member equity. The equity plan also determines how much of the cooperative’s investment in electric system assets will be covered through member capital and how much will be covered by long-term debt. Our goal is to balance member capital (equity) and debt in order to give members the lowest possible rates. Your cooperative has returned over $57 million in capital credits to our members. It pays to be a member of a cooperative and we’re pleased to provide good value to our members!
Thank you for giving! Members are generously donating to Operation Round Up, including an easy way we began offering in recent years: donating all or a portion of their capital credits refund. Some 1,500 members are donating over $43,000 in capital credits refunds annually to this “member helping member” program. Even more are donating by rounding up their bill each month by the amount they choose to give.
D t w •
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I v t m c
Since Operation Round Up began, over $2.5 million has been raised to help our members and our communities. That’s what the cooperative spirit is all about!
MEMBERSHIP matters
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ly n easy in ll or al
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Convenient options include online and mail
Director election kits coming mid-May
One advantage of being served by a cooperative is the right to elect your fellow co-op members to serve on the Board of Directors that guide your cooperative. Voting online or by mail has enabled a record number of members to be involved in their cooperative in recent years, although members may still attend and vote for directors during the Annual Meeting. Director election kits will be sent to members on May 24. Included will be: • biographical information for all candidates • a proxy for members to vote in every district • instructions to vote online or by mail If voting by mail, in order to be valid the form must be signed by the member with choices clearly marked and returned in the enclosed postage-paid envelope no
later than 5 p.m. on Wednesday, June 14, 2017. Please note that, in order to comply with proper election management procedures, the form cannot be given to an employee or accepted at any Blue Ridge office.
Voting via the internet or by mail saves your cooperative money, which helps us control costs for members. We encourage you to try one of these voting options!
To ensure the integrity of director elections, a third-party election management firm is approved each year by the Credentials and Election Committee (committee members’ names are available at BlueRidgeEMC.com). This committee is comprised of members from across the cooperative’s service area and is responsible for ensuring elections are properly conducted and for certifying election results. Look for more information on the cover wrap of this issue of Carolina Country, in your director election kit coming late May and on our website at BlueRidgeEMC.com.
Save with rebates! If you’re making home improvements, we can help save you money with our Powerful Solutions rebate program. These rebates not only reduce costs now, they also help you save each month on your electric bill because they’re improving your home’s energy efficiency. Available for Energy Star purchases for a limited time (some restrictions apply): Appliance Rebates
Weatherization Rebates
ENERGY STAR® Refrigerator (min. 15 cu. ft.) $25
Air Sealing
up to $100
ENERGY STAR® Freezer (min. 10 cu. ft.)
$25
Duct Sealing or replacement
up to $100
High Efficiency Heat Pump (16 SEER >)
$150
Insulation up to $100
Geothermal Heat Pump (19 SEER >)
$250
Building an ENERGY STAR® home
up to $500
Apply for the rebate and find qualifications information in our district offices or online at BlueRidgeEMC.com > Powerful Solutions. MEMBERSHIP matters
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Coming soon! Did you know that when your cooperative saves money or reduces costs, these savings are passed along to our members in the form of lower rates? The single largest expense for the cooperative and its members is wholesale power. While the power agreement negotiated by Blue Ridge Energy has very favorable pricing and assures members will receive reliable, clean, and competitively priced energy for years to come, there are opportunities for members to join us in controlling costs to keep rates lower. How can you help? First, it helps to understand that a large part of wholesale power costs are directly related to how much power the cooperative consumes during the hottest days of the summer. This is referred to as “Summer Peak Demand” or simply “Summer Peaks.” CHIEF EXECUTIVE OFFICER Doug Johnson
EDITOR Renée R. Whitener
PRODUCTION SUPERVISOR Susan Simmons
What occurs during these peaks is that more power must be produced in order to maintain a reliable supply of electricity. This adds considerable cost to wholesale power rates your cooperative has to pay that otherwise could be avoided if these summer peak loads were reduced.
This is where the cooperative and its members can work together to make a difference and keep rates as low as possible! Our summer peaks typically occur between the hours of 2−6 p.m. on the hottest days of the summer. If each member made small changes to their electricity usage during these peak periods, significant power cost savings could be achieved each year. Some of these small changes are: raising your air conditioning thermostat by a few degrees; postponing using appliances for washing dishes, washing and drying clothes until after 6 p.m; turning lights off in unused rooms; and anything you can do to avoid using unnecessary electricity during the peak periods. By making these small changes, each member plays an extremely important role in controlling wholesale power cost and reducing the cost of electricity for all members. Stay tuned for more information coming soon regarding the program your cooperative is creating to help members join with us in this effort!
DISTRICT OFFICES Caldwell Watauga Ashe Alleghany Wilkes PowerLine®
(828) 754-9071 (828) 264-8894 (336) 846-7138 (336) 372-4646 (800) 451-5474 (800) 448-2383
(PowerLine® is an automated account information and outage reporting system.)
Toll Free
(800) 451-5474
(for members outside of the service area.)
To report an outage at any time, call one of the numbers listed above. OFFICE HOURS: 8:30 am - 5:00 pm, Monday-Friday Kiosk available 24/7 + Night deposit Visit us on the web: BlueRidgeEMC.com +
Telephone Town Hall Is May 9 Your cooperative’s next Telephone Town Hall will be Tuesday, May 9, beginning at 6:30 p.m. CEO Doug Johnson will be sharing timely updates and information. To listen and have the opportunity to ask questions, simply answer the phone when we call We’ll be calling the phone number on May 9 at 6:30 p.m.
listed on your account with us,
As a reminder, we’ll be calling so please be sure to contact us to members a few days in advance update your information if needed. of the event. At that time, you can choose to opt out of the Telephone Town Hall call if you wish. We will not call members who have already notified us they wish to opt out. This institution is an equal opportunity provider and employer.
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MEMBERSHIP matters
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